Minnesota legislators break with to-do list whittled down

As Minnesota legislators fan out across the state during their spring break, members of the Democratic-Farmer-Labor Party majorities can brag about providing a tax cut, increasing the state's minimum wage and passing a law to protect students from bullying.

Republicans say the tax cuts are a small step toward fixing a big mistake that DFLers made last year in passing a tax increase, and they contend that the "extreme liberal" versions of the minimum wage and bullying bills the DFLers passed show they're unwilling to compromise.

During their first seven weeks at the Capitol this session, DFLers acted faster than usual on the major items on their agenda before adjourning Thursday for an 11-day Easter/Passover recess.

Asked what they accomplished, House DFL Speaker Paul Thissen ticked off this list:

"Passing tax cuts for a million middle-class Minnesotans.

"Passing a minimum wage that's going to help 350,000 Minnesotans take care of their families and themselves.

"Passing the bullying bill that's going to protect lots and lots of students at schools all across the state of Minnesota, allowing them to actually learn while they're in school."

The tax bill cut state income and sales taxes by $443 million over the next year. It reduced individual income taxes by aligning some, but not all, state tax credits with the federal tax code, and it repealed three sales taxes on businesses that were enacted last year.

Lawmakers used about one-third of the state's $1.2 billion budget surplus to provide those tax breaks.

Most Republicans supported the tax cuts but said they didn't go far enough. Senate GOP Minority Leader David Hann said they should have given far more of the surplus back to taxpayers instead of spending the bulk of it.

Cutting taxes by $443 million a year after passing a $2.1 billion tax increase is "like taking $200 from somebody, giving them $50 back and pretending it's a tax cut," said House Republican Minority Leader Kurt Daudt.

But DFL leaders said their tax cuts will help the Minnesotans who need it most. Senate Tax Committee Chairman Rod Skoe, DFL-Clearbrook, said the combination of an increased working family tax credit, which will save 347,000 families an average of $300 a year, and the higher minimum wage would provide a "truly significant benefit" for lower-income working families.

The minimum-wage bill raises the wage in stages to $9.50 an hour for large businesses and $7.75 for smaller employers in 2016. Gov. Mark Dayton will sign it into law Monday at a Capitol ceremony.

The anti-bullying law signed last week requires school districts to develop comprehensive prevention policies, react quickly to allegations and train staff to recognize bullying.

"It's pretty clear that the Democratic agenda is being driven by the liberal wing of the Democrat Party, and they're bent on doing this in a partisan way," Hann said.

Last week, the House also passed the "Women's Economic Security Act" aimed at narrowing the pay gap between men and women, expanding access to affordable child care, increasing unpaid parental leave and strengthening workplace protections. Thissen said passing it with bipartisan support was a "big accomplishment."

He and Thissen agreed they have just four "must-do items" remaining on their agenda for this session:

-- Passing a bonding bill that funds nearly $1 billion in public works projects.

-- Negotiating a budget bill that boosts wages for caregivers for the elderly and disabled, guarantees hot lunches for low-income students and fills potholes, among other projects. The House passed a $322 million spending bill; the Senate version carries a $210 million price tag.

-- Approving a second, smaller tax-cut bill that includes property tax relief. Both houses passed proposals to reduce taxes by just over $100 million.

-- Taking final action on the women's economic security package.

Dayton wants lawmakers to add one more item to that agenda: his "unsession" initiatives to get rid of unnecessary laws and make state government better, faster, cheaper and simpler.

Of his 1,007 proposals, 45 have been sent to him for his signature, and 962 are in bills that made it through the committee process but have not yet passed, said Dayton press secretary Matt Swenson.

"They're all on track to make it," he said.

The Legislature's Job No. 1 in this nonbudget year is the bonding bill. Last year, DFL and GOP legislative leaders agreed to spend up to $1 billion for construction projects during the current two-year budget cycle. They authorized $154 million in borrowing last year, leaving an $846 million cap under the agreement this year.

Citing what he called critical infrastructure needs, Dayton has asked lawmakers to lift that cap, and Bakk said he's willing to do so. But the Senate DFL leader also said he would abide by the bipartisan agreement if Republicans leaders insist, and Hann said Republicans don't want to tax and spend any more than necessary.

It takes a three-fifths majority to pass a bonding bill, so DFLers need at least two Republican votes in the Senate and eight in the House to approve the measure.

All the leaders support providing $126 million to complete the four-year, $272 million renovation of the aging Capitol.

In a related development, DFL lawmakers authorized construction of a new Senate office building across the street from the Capitol after the project's planners reduced the cost to $77 million from $94 million.

DFL leaders said they need the new building to house senators while the Capitol is being renovated and will need to replace space they will lose in the Capitol after the restoration is completed.

Republicans argue that the new building is unnecessary and didn't receive adequate public scrutiny.

"I think the Democrats have made a lot of mistakes, and the Senate office building is the crown jewel of them all," House GOP leader Daudt said. It shows they're "tone deaf to the public."

Hann and Daudt also criticized DFLers for refusing to take any steps to fix MNsure, the state's new health insurance exchange. Both predicted sharp insurance premium increases next year for consumers purchasing coverage in the private market because enrollment is far below projections.

"This is going to be a huge problem," Daudt said, "and Democrats are trying to ignore it and hope it goes away until after the election."

Almost every year some surprise issue pops into the spotlight, and this session it's medical marijuana.

Early in the session, Dayton got in a high-profile tussle with medical marijuana supporters who contend it's the only source of relief for people with certain debilitating medical conditions. The governor said he would not support any measure to legalize the drug for any purpose without the support of law enforcement groups.

But after taking a verbal beating, Dayton last week dared lawmakers to vote on a medical-marijuana bill if they thought they could pass it. "They've hidden behind their desks the whole session while I've taken this on," he complained.

Proponents quickly revived proposals that had been stalled and will try to pass a bill when the Legislature reconvenes.

"I just didn't see any sense in us spending much time going through three or four committees on something that seemed destined for a veto," Bakk said. "But when the governor cracked the door and said the Legislature should vote on it ... I'm willing to do that. I don't have a clue if the votes are there to pass it out."

Thissen said House leaders are trying to find a solution that relieves suffering from maladies that conventional medications don't help while addressing the concerns of medical and law-enforcement groups.